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Exhibit 28-2 Production possibilities curves for U.S. and Mexico Two graphs depicting the production possibilities curves of cloth and corn for the U.S. and Mexico.
Exhibit 28-2 Production possibilities curves for U.S. and Mexico Two graphs depicting the production possibilities curves of cloth and corn for the U.S. and Mexico. In both graphs, wheat in tons per day is on the horizontal axis ranging from 0 to 100 with increments of 20. Cloth in tons per day is on the vertical axis ranging from 0 to 100 with increments of 20. A line on the first graph, labeled P P C_U.S. slopes down from (0, 100) to (100, 0), passing through points (20,80), (40,60), (60,40), and (80,20). A line, labeled P P C_Mexico slopes down from (0, 60) to (40, 0), passing through points (20,30). As shown in Exhibit 28-2, the United States has a comparative advantage over Mexico in: a. cloth, but not in wheat. b. wheat, but not in cloth. c. both wheat and cloth. d. neither wheat nor cloth
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